Kangwon Land, the only casino in South Korea at which locals are allowed to gamble, reported a net profit of KRW78.0 billion (US$58.7 million) in 4Q23, an increase of 5.2% over the September 2023 quarter and 746% higher year-on-year – despite suffering slight declines in both its gaming and non-gaming revenues.
According to information published late Wednesday, Kangwon Land saw gross gaming revenues decline by 2.8% year-on-year and 10.2% sequentially to KRW313.8 billion (US$236 million), with all gaming segments suffering declines.
Mass tables fell by 2.6% year-on-year to KRW151.4 billion (US$114 million), slot machines by 2.6% to KRW130.5 billion (US$98 million) and Membership Club by 4.5% to KRW32.0 billion (US$24 million). Total drop amount was also down by 11.2% to KRW1.34 trillion (US$1.0 billion) and visitation by 0.6% to 569,957.
Likewise, non-gaming revenue fell by 2.1% year-on-year and by 26.2% sequentially to KRW39.8 billion (US$30 million), primarily on lower hotel and condo sales.
Net profit grew thanks to a strong 24.0% margin, up from 19.8% in 3Q23 and 2.8% in 4Q22.
Located 150 kilometers (93 miles) from Seoul, Kangwon Land was borne out of Korea’s conversion to gas and oil for energy, leading to the closure of mines in Gangwon province in 1989.
Legislation in 1995 encouraged redevelopment of abandoned mining areas, prompting local, provincial and national authorities to found Kangwon Land Inc, which is 51% government owned and overseen by the national Ministry of Knowledge Economy.
Aside from its casino operations, the company also runs a slot machine brand, KL Saberi.
